WASHINGTON — The Trump administration on Thursday asked the Supreme Court to allow the president to immediately fire Federal Reserve board member Lisa Cook.
In a court filing, Solicitor General D. John Sauer said that a judge’s ruling that blocked the firing constituted “improper judicial interference.”
President Donald Trump has made clear his intention to reshape the Federal Reserve despite its traditional independent status.
Trump has invoked a provision that allows Federal Reserve board members to be removed “for cause,” citing allegations of mortgage fraud against Cook brought by one of Trump’s political appointees, Federal Housing Finance Agency Director Bill Pulte. Cook has not been charged with any crime and has denied the allegations.
Under the Federal Reserve Act, the only reason Fed governors can be removed is “for cause,” or some type of wrongdoing.
The White House has repeatedly maintained that Trump “lawfully removed Lisa Cook for cause.”
Sauer wrote in the administration’s filing to the Supreme Court: “That the Federal Reserve Board plays a uniquely important role in the American economy only heightens the government’s and the public’s interest in ensuring that an ethically compromised member does not continue wielding its vast powers.”
Among the legal issues in the case is whether Cook has a due process right to contest the allegations before she can be removed from office.
Lower courts ruled in favor of Cook, prompting Trump to rush to the conservative-majority Supreme Court.
Trump is the first president in history to attempt to fire a top Fed official. Cook’s lawyers have contended that if he succeeds, global markets could face instability due to the upending of the independence of what is considered the world’s most important central bank.
Economists have widely agreed with that, and have warned that tampering with the Fed’s long-standing independence could cause interest rates to rise.
On Wednesday, the Fed voted to lower interest rates for the first time since December. Cook was among the officials who voted for the rate cut, long sought by the president.